Looting the USA

 
Another message from the trader whose earlier message I forwarded earlier. Highly recommended. And report that Fed will lend money to AIG.
 
Don Stacey  From: don.stacey
 
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Fed to loan AIG $85 billion and take 80% stake in rescue
http://www.iht.com/articles/2008/09/17/business/17insure.php

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This is pre FED take over of AIG.  

LOOTING THE USA (right out in the open)

As I said I thought would happen last night, The FED didn't move today. They did create around 70 billion in new money just today alone and sent it into the banking system. They didn't lower because we already have huge negative real rates. What they need is new money. Lots of it. It 's coming. A cut right now would have spooked US dollar holders and potentially caused a problem in the dollar. So as they did today and have been doing all week, they will be creating a lot of money and pumping it into the system to reinflate. They have the freedom to do that now since the attack on commodities.

The market movements after the announcement were predictably odd in the midst of all of this market management. Basically, in spite of the fact that the markets were incorrectly forecasting an 80% probability of a 25bps cut, there was very little post announcement movement except in the fed funds futures and related interest rate markets. The USD was rock steady. It looked to me like the FED was simultaneously covering commodity shorts into a bout of speculative selling in commodities immediately after the announcement because that new selling very quickly stabilized....like someone threw a switch. It also looked like they gave the market a shot of rocket fuel, buying S&P futures.

It could be that the new expanded powers FED thinks their work in commodities and in the dollar is done for now. There are indications that the banks are covering shorts in gold. Regarding energy, the thing to remember is that there is a lot of vested interest in oil companies. Tanking the oil companies shares has a limit. That said, there is speculation that the western banking cartel are trying to bankrupt the mideast and Russia with an oil rout...and they are being pretty successful with Russia. I'm sure they called on the whole gang to pull money out as they zapped the energy markets. As I said when this all started, the western banking cartel would attack Russia economically because they won't play ball. So Russia is on my avoid list.

Russia's Micex Index Falls Most Ever; Exchanges Suspend Trading
By William Mauldin and Bradley Cook
Sept. 16 (Bloomberg) -- Russia's Micex Index plunged a record 17 percent, prompting the exchange to halt trading, after the cost of borrowing in dollars overnight more than doubled and oil prices tumbled.
Address : <
http://www.bloomberg.com/apps/news?pid=20601085&sid=arDqI96NrL1Q&refer=europe>

Maybe Vladimer will think twice before flexing his military muscles or running 911 truth movies on state television in prime time.

Also, surprise surprise....not. It looks like the FED decided to bail out AIG, a private corporation that isn't even a bank.The automakers and the airlines are the next to be nationalized I guess. When do we call it fascism? It's definitely not lassiz faire capitalism. My New Bolsheviks handle is looking more and more right on all the time.They are simply looting the USA. They are keeping the profits for themselves and and the losses are socialized...otherwise known as sticking the taxpayers with it.

I guess it all depends on who you know. Greenberg is one of the boys. It doesn't matter that he got indicted for FRAUD and doesn't run the company. Put that in the memory hole. This is further evidence that the politicians are not the ones in charge. What is a "conservatorship"? it's a synonym for nationalization but it's easier for the serfs to digest. Interestingly, the FED isn't asking for permission either...because they don't need it any more.

Treasury Said to Be Considering AIG Conservatorship (file under: conservatorship = nationalization)
By Craig Torres and Elizabeth Hester
Sept. 16 (Bloomberg) -- The U.S. Treasury is considering taking over American International Group Inc. under a conservatorship as one option to address the insurer's crisis, according to two people briefed on the discussions.
Address : <
http://www.bloomberg.com/apps/news?pid=20601087&sid=a11UW1B8w8uM&refer=home>

So it is quite clear, and things have happened very quickly. Every financial forum you read on the internet is full of comments from people who understand. To say they aren't happy about it is an understatement. They realize that this banking cartel group of thugs has now effectively taken control of and are looting everyone's lives, present and future right out in the open. It makes people angry or sick to their stomach. The politicians won't speak up or they'll be on the front page of the NYT doing something illegal or perverted...or both.

I exerpted a "man on the street" comment from a forum. This what the average joe has been able to conclude.You can see this sentiment echoed everywhere. It's a loss of confidence.

"
We never had a free market, but now it's a Joke. The govt now owns half the houses in th US via Fannie and Freddie.
Now they own who knows how much of the stock market, via their market pumping conducted though selected financial institutions.
"-anonymous

The interesting thing is that this is basically correct. We have a corrupt government, a nationalized financial system run by criminals, and the taxpayers are all being saddled up with an ever more unpayable debt to keep it going in the near term while they loot the USA. They are obviously relying on brute force daily or nearly daily operations in a variety of markets to manage prices. Its blatant now. All the traders I communicate with see it. I don't think it takes a lot to see that this story is not going to have a happy ending. It doesn't even have a happy middle...it's just perpetually now staying one step ahead of a meltdown. It's also very frustrating as a trader.

So we all now have a vested interest in the success of AIG because Mr Greenberg is being bailed out with our tax dollars, based solely on the decision of the ex head of Goldman Sachs and a bunch of other shadowy unelected officials who are now the ones in charge. So now buyers of US Treasuries are also long Freddie and Fannie, AIG, and a host of other shadowy slimy assets that no one even truly knows what they are. I expect that when the dust settles, there is going to be a lot of rethinking among foreign governments in owning treasuries, because you really own a lot of junk and liabilities and you
can't even quantify it. Put it this way, if China keeps it's trade surplus in dollars, they are complete fools (as Paulson and company expect them to be).

Welcome To The Jungle
By: Theodore Butler
16 September, 2008
Financial developments are occurring so quickly that last week's "warp speed" comment seems slow. These are truly unprecedented times. I think it's safe to say that no one alive has any experience with the ramifications of the unfolding events. The financial turmoil is radically altering how everyone looks at his or her assets. In a real sense, we seem to be in a fight for financial survival. One misstep and a lifetime of asset accumulation can vanish.
Address : <
http://news.silverseek.com/TedButler/1221588694.php>

I saw a headline go by today that Dodd said "the FED should discuss bailouts with congress" HA. Why? I guess the irrelevancy of the politicians is causing some ego problems. They will discuss it...to tell you what they've done. If you squawk about it, they'll have their shareholders and affiliates find your replacement as they pass some pictures with you getting busy with the pages. For people like myself who have now been around a while, the US is not recognizable any more. It's something else.It is something very corrupt and very dangerous.

The US financial system now resembles a back room all night craps table run by criminals. Seriously. The markets have become a non transparent roulette wheel and they always win because they are the house. Shady deals are struck by unelected officials on the weekends....they are looting the country left and right and apparently no one even cares. I shouldn't say that. The people who understand do care, but they are absolutely powerless to do anything about it. They are taking all the money, right in front of everyone. They are also leaving a lot of foreign governments holding empty bags.

JPMorgan Gave Lehman $138 Billion After Bankruptcy (file under: read the details because you paid for it)
By Tiffany Kary and Chris Scinta
Sept. 16 (Bloomberg) -- Lehman Brothers Holdings Inc. was given $138 billion this week in Federal Reserve-backed JPMorgan Chase & Co. advances to settle Lehman trades and keep financial markets stable amid the biggest bankruptcy in history, according to a court filing.
Address : <
http://www.bloomberg.com/apps/news?pid=20601087&sid=aX7mhYCHmVf8&refer=home>

Merrill's Thain, Aides May Get $200 Million for Year (file under: looting the USA)
By Jonathan Keehner and Bradley Keoun
Sept. 16 (Bloomberg) -- Merrill Lynch & Co. Chief Executive Officer John Thain and two former Goldman Sachs Group Inc. colleagues he recruited may reap almost $200 million for their year running Merrill if they leave or are given lesser roles after Bank of America Corp. buys the brokerage.
Address : <
http://www.bloomberg.com/apps/news?pid=20601109&sid=aKXe2Xgflk4c&refer=home>

Reserve Primary Money Fund Falls Below $1 a Share (file under: looting the investors)
By Christopher Condon
Sept. 16 (Bloomberg) -- Reserve Primary Fund, a money- market mutual fund with $64.8 billion in assets as of Aug. 31, fell below $1 a share in net asset value because of losses on debt issued by Lehman Brothers Holdings Inc. Investor redemptions will be delayed as long as seven days, the fund's owner, Reserve Management Corp., said today in a statement. Withdrawals requested before 3 p.m. New York time today will be paid at $1 a share.
Address : <
http://www.bloomberg.com/apps/news?pid=20601087&sid=a_b7JdUfOkBs&refer=home>

Below, the energy futures markets continue to depart from reality. It looks like what I was saying tongue in cheek is going to become our new reality. We may have 70's style gas lines and gas rationing at pumps while....gasoline futures prices are going down in flames????  Why would anyone want to be short gasoline futures in the face of shortages and rationing? Who would take that position? The back room craps game hosts would. This departure of spot futures prices from physical prices is hard evidence of market manipulation. It even undermines the supposed reason the markets are going down in the first place...lack of demand and shortages are mutually exclusive events.

Ex-oil chief warns of need for gas rationing
David M. Dickson
Tuesday, September 16, 2008
One of the oil industry's most influential voices called Monday for a temporary 1970s-style rationing of gasoline in parts of the United States to help avoid hurricane-related shortages and declared that the Bush administration, the Congress and the two men running for president have failed to exhibit the courage needed to solve America's longer-term energy problems.
Address : <
http://www.washingtontimes.com/news/2008/sep/16/former-oil-chief-warns-of-need-for-gas-rationing/>

Below, currently gasoline futures prices imply gasoline pump prices of $3.30. There is no place in the US where gas is selling for that price, and for the vast majority of the US, the prices are far higher than that. It's now over $4.00 here, almost as high as it was when crude was $150.

National Gasoline pump price map
http://www.gasbuddy.com/GB_Map_Gas_Prices.aspx

and everyone sees the manipulation in stock index futures as they try to "save the system"....

WALL STREET'S STORMY WEEK
By JOHN CRUDELE
September 16, 2008
IT could have been worse. In fact, it should have been an utter disaster. The Dow Jones industrial average lost more than 500 points yesterday and it's difficult to find the bright side of that. But with the financial system coming under enormous stress this past weekend - and with big stock market losses already commonplace - a lot of people on Wall Street were probably sighing with relief that yesterday wasn't the Armageddon many feared. There are so many story lines here that it's hard to know where to start, so I'll begin at 7 a.m. yesterday.That's when, despite sharp declines in stock futures markets overnight, someone in New York vigorously and valiantly began buying Standard & Poor's futures contracts.
Address : <
http://www.nypost.com/seven/09162008/business/wall_streets_stormy_week_129333.htm>


British Foreign Secretary says he is not a 'f****** lunatic' (file under: wearing shoes that fit or f*** lunatics)
Front page / World / Europe
16.09.2008 Source: Pravda.Ru     
Britain's Foreign Secretary David Miliband said in an interview with the BBC Monday that the head of the Russian Foreign Ministry, Sergei Lavrov, did not swear at him in a telephone conversation, RIA Novosti reports. Answering a question of whether Lavrov used dirty language in a conversation with him, Miliband said that it was not quite correct. "It is not true that he called me a "f****** lunatic," the head of the British Foreign Office said.
Address : <
http://english.pravda.ru/world/europe/16-09-2008/106369-british_foreign_secretary-0>

>Russia laughs at NATO's face
Front page / Russia / Politics
16.09.2008     Source: Pravda.Ru
"When I was talking about the role, which NATO, particularly the USA, played during the conflict in the Caucasus, the US ambassador stormed out of the room," the Russian ambassador to NATO said. Speaking about the initiative of the international investigation, Rogozin said: "When NATO refuses to answer the question of who attacked whom, although the answer is obvious, there is no need to speak about this investigation as independent. Who is going to be an independent investigator? Condoleezza Rice?"
Address : <
http://english.pravda.ru/russia/politics/106368-1/>

Who's next after Lehman Brothers is fed to the wolves?
By Ambrose Evans-Pritchard
15/09/2008
Address : <
http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/09/16/ccambrose116.xml>

The Social Imperative of Sound Money
by Llewellyn H. Rockwell, Jr.
This past week, the government announced that it would take Freddie Mac and Fannie Mae, the mortgage giants, under conservatorship, which is a nice way of saying that they will be nationalized. We don't use the word nationalize any more. We can try an experiment and read the new term "conservatorship" back into history. In fact, we might say that Stalin and Lenin put Russia's industries under a kind of conservatorship. Or we might say that Mao pushed a kind of land conservatorship, or that Hitler's policy was one of national conservatorship. ...This sort of thing makes a mockery of the Constitution and the very idea of freedom and the free market, to say nothing of the idea that we have a limited government. What's more, if we can believe press reports, President Bush had very little to do with the decision. It was the work of Henry Paulson, the secretary of the Treasury and former head of Goldman Sachs, working on behalf of the nation's most well-connected financial elites. Nobody elected this guy. Most Americans don't even know his name.
Address : <
http://www.lewrockwell.com/rockwell/imperative-sound-money.html>

America 's Financial Apocalypse Heralds Decade Long Depression
Economics / US Economy Sep 14, 2008 - 04:28 AM
By: Mike_Stathis
Economics
Despite attempts made by Greenspan and Bernanke, there is no way to avert the payback period that has been building for over two decades. Over this stretch, America has consumed much more than it has produced. As a result, both consumer and federal debt have ballooned to record levels. And now, the payback period is upon us. The bailout buffet won't end with Fannie and Freddie. There's a lot more where that came from because the "Fed's food court" remains open, as does that of the U.S. Treasury. In fact, the autos are in the process of being bailed out with $50 billion in "loans." I expect the airlines to also receive some form of a bailout as well. Washington 's Three Stooges
Address : <
http://www.marketoracle.co.uk/Article6256.html>

Where Was Lehman's Board?
Posted by Dennis K. Berman
Nine of them are retired. Four of them are over 75 years old. One is a theater producer, another a former Navy admiral. Only two have direct experience in the financial-services industry.Meet the Lehman Brothers Holdings Inc. external board directors, a group of 10 people who, perhaps unknowingly, carried the health of the world's financial system on their shoulders the past 18 months.
Address : <
http://blogs.wsj.com/deals/2008/09/15/where-was-lehmans-board/>

Banks make their own liquidity a priority
By Michael Mackenzie in New York and David Oakley in London
September 16 2008 20:36 | Last updated: September 16 2008 20:36
Turmoil intensified across global money markets on Tuesday as banks stockpiled their holdings of cash and refused to lend to each other, prompting a surge in borrowing rates.
Address : <
http://www.ft.com/cms/s/0/20d62052-8424-11dd-bf00-000077b07658.html>

Sagging gold prices threaten high-cost mines
Mon Sep 15, 2008 5:38pm EDT
By Cameron French - Analysis
TORONTO (Reuters) - A decision by top-tier gold producer Goldcorp (
G.TO: Quote, Profile, Research, Stock Buzz) to shut one of its higher-cost mines may just be the first of other similar announcements, as miners struggle with gold prices that have dropped more than 20 percent in just a month. Gold miners typically will say they don't alter their operations due to short-term commodity price fluctuations. But facing a weakening price picture, Goldcorp said it will halt mining at its small Pamour mine in northern Ontario. While gold's price is still up year-on-year, soaring mining costs have narrowed margins and have raised expectations that more lower-grade mines could also go quiet. "The pullback in the gold prices has made everybody look at their operations," said John Ing, president of Toronto investment dealer Maison Placements.
Address : <
http://www.reuters.com/article/reutersEdge/idUSN1529367520080915?rpc=401&feedType=RSS&feedName=reutersEdge&rpc=401>

The Law of Supply and Demand Is Dead for Gold and Silver
by: J. S. Kim posted on: September 15, 2008 | about stocks: GLD / SLV    
I'm going to preface this article by warning you that this is one of the longest and most important articles I have scripted in many months. During the recent gold and silver correction that began on July 14, 2008 and which perfectly coincided with the miraculous surge higher in the U.S. dollar, there was a massive story unfolding that should have been a lead story in every financial magazine, newspaper and website. Yet the media responded with silence. The story was so big, as a matter of fact, that every economics textbook should now have to remove the Law of Supply and Demand from their pages because if free markets still exist, the recent behavior in gold and silver markets strongly obliterates it.
Address : <
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How the Masters of the Universe ran amok and cost us the earth
Date: 16 September 2008
By Bill Jamieson
SLAM. Slam. Slam. Slam. Like a scene from a gathering of Mafia dons, the doors of 30 black Lincolns slammed shut as their besuited occupants stepped out into a Manhattan downpour – and into a global financial storm. That storm broke yesterday, with stock markets tumbling around the world. In London, the FTSE 100 plunged almost 4 per cent to 5204.2. Scotland's banking giants were among the biggest victims. HBOS slumped 17.5 per cent; Royal Bank of Scotland lost 12.2 per cent. In the US, the Dow Jones industrial average suffered its biggest fall since 9/11. The collapse effectively began at 6pm last Friday. The place: the offices of the New York Federal Reserve. The occasion: an emergency meeting of the most powerful figures in American banking and finance aimed at staving off a massive bank collapse.
Address : <
http://thescotsman.scotsman.com/latestnews/-How-the-Masters-of.4494032.jp>